re: #340 lawhawk

The tax positions in the US are clear through the expiration of the extended Obama cuts in 2013. That gives roughly 2 years of guidance on tax positions. Government spending is also roughly known for the ongoing fiscal year and part of next. So I’d put that down as less of a factor on business sitting on the sidelines than other factors.

Uncertainty in the bond markets and the stock market are more of a driver as to why businesses aren’t expanding and/or are sitting on larger cash reserves. Jitters about the overseas stability of countries like Italy and Greece are a factor - and worries that the problems could spread to other markets is a factor.

The real estate market in the US is a major reason businesses aren’t doing well; it’s a key driver to so many different industries that it’s having a ripple effect that will be felt for years to come. Some regions are seeing growth, but it’s anemic on a national level compared to what’s necessary for a stable market (when looking at inventory, new builds, existing home sales, etc.) And in those markets where there is growth and/or demand for new housing, developers are having a tough time obtaining the necessary credit even with all the government intervention in the credit markets to date.

The down real estate market is in the pits. They are building some new homes though around the area that I’m currently located. I imagine these were planned pre October of 2008 considering the long process involved in this state. There is still, oddly enough, a surplus of homes when you consider previous build outs and foreclosures.